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"In addition to the less dovish stance of the BoE, the issues facing the euro zone suggest that further [Euro] downside is likely ahead of the publication of the Inflation Report"
- Rabobank (based on Reuters)
Pair's Outlook
Break of a tough resistance at 1.6107/36 was not sustained, leading to a dip down to 1.6050. At the moment the pair is consolidating, but is viewed as able to renew bearish behaviour in near future, being that daily indicators point to the downside. The first support to be encountered lies at 1.6010/15, it guards lower levels, which are found at 1.5987, 1.5959/22 and 1.5885/69, forming a strong support area.
Traders' Sentiment
At the moment the short positions on the currency pair outweigh the longs ones, as their shares in the SWFX marketplace are 59% and 41%, respectively. Moreover, within the range of 100 pips from the current price sell orders exceed buy orders by 14%, implying the possibility of amplification of bearish sentiment in the nearest future.
© Dukascopy Bank